The performance of first-lien mortgages serviced by seven national banks and one federal savings association improved slightly in the third quarter of 2014, according to a report released Friday by the Office of the Comptroller of the Currency.

The OCC report on mortgage metrics showed 93% of mortgages were current and performing at the end of the quarter, compared with 92.9% at the end of the previous quarter and 91.4% a year earlier. The percentage of mortgages that were 30 to 59 days past due was 2.4% of the portfolio—an increase of 1.9% from the previous quarter, but an 8% decrease from a year earlier.

Seriously delinquent mortgages—60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due—made up 3.1% of the portfolio—a decrease of 0.9% from the previous quarter and 14.5% from a year earlier.

Foreclosure activity among the reporting servicers continued to decline. The number of mortgages in the process of foreclosure at the end of the third quarter of 2014 fell to 353,906, a decrease of 41.5% from a year earlier. The percentage of mortgages that were in the process of foreclosure at the end of the third quarter of 2014 was 1.5%.

Servicers initiated 82,668 new foreclosures during the quarter, a decrease of 36.7% from a year earlier. The number of completed foreclosures also decreased 45.4% from a year earlier to 45,245. Improved economic conditions and foreclosure prevention assistance contributed to the decline in foreclosure activity.

Servicers implemented 205,689 home retention actions during the quarter—including modifications, trial-period plans, and shorter-term payment plans—compared with 58,214 home forfeiture actions during the quarter, which include completed foreclosures, short sales, and deed-in-lieu-of-foreclosure actions. The number of home retention actions implemented by servicers decreased by 1.2% from the previous quarter and 34.3% from a year earlier.

In the third quarter of 2014, more than 90% of modifications reduced monthly principal and interest payments; 55.1% of modifications reduced payments by 20% or more. Modifications reduced payments by $257 per month on average, while modifications made under the Home Affordable Modification Program reduced monthly payments by an average of $284.

Servicers implemented 3,595,553 modifications from January 1, 2008, through June 30, 2014. Of these modifications, almost 57% were active at the end of the third quarter of 2014, and almost 43% had exited the portfolios of the reporting institutions, through payment in full, involuntary liquidation—foreclosure, short sale, or deed in-lieu-of foreclosure—or transfer to a non-reporting servicer.

Of the 2,047,719 modifications that were active at the end of the third quarter of 2014, approximately 68.6% were current and performing at the end of the quarter, 25.7% were delinquent, and 5.7% were in the process of foreclosure.